States of Jersey Development Company: Permission to sell International Finance Centre (5)

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A decision made on 8 February 2019

Decision Reference: MD-TR-2019-0010
Decision Summary Title:	SoJDC – permission to sell its wholly owned subsidiary, JIFC (5) Limited, that holds the long leasehold interest in IFC 5.		Date of Decision Summary:	30th January 2019
Decision Summary Author:	Head of Shareholder Relations		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	SoJDC – permission to sell its wholly owned subsidiary, JIFC (5) Limited, that holds the long leasehold interest in IFC 5.		Date of Written Report:	30th January 2019
Written Report Author:	Head of Shareholder Relations		Written Report : Public or Exempt?	Exempt: FoI Article 33
Subject: States of Jersey Development Company (“SoJDC”) – permission to sell its wholly owned subsidiary, JIFC (5) Limited, that holds the long leasehold interest in International Finance Centre Building 5 (“IFC 5”).
Decision(s): The Minister approved the request for SoJDC to sell its wholly owned subsidiary, JIFC (5) Limited, that holds the long leasehold interest in IFC 5 subject to:- the sale price being in excess of, or equal to, the minimum price set out in the written report; the minimum price and the sale price to remain confidential until the sale completes; the sale proceeds being utilised to repay outstanding loans in respect of IFC 5 as approved in MD-TR-2016-0089; and the remainder of the funds being retained by SoJDC in order to part finance further developments, in particular the new Esplanade Quarter underground public car park.
Reason(s) for Decision: In accordance with the SoJDC Board’s view that now is an opportune time to dispose of the asset. In accordance with the guiding principles as set out in Section 8 of P.73/2010 where it is stated, “Once developments have been completed, they should be sold in the open market or if there is a strategic reason for long-term ownership by the States, transferred to SoJ at market value.” The Minister’s approval for SoJDC is in accordance with the MoU Section 13.1 which includes the requirement of the consent of the Minister if SoJDC, “Sells, transfers, leases, or in any way disposes of all or a material part of its business or assets;”
Resource Implications: There are no financial implications for the States and dividend assumptions will remain in line with the Medium Term Financial Plan 2016-2019.
Action required: Head of Decision Support to inform the Director of Treasury Operations and Investments once the decision is signed. The Director of Treasury Operations and Investments to inform the Managing Director of SoJDC that the Minister has approved the request. In accordance with Section 12 of P.73/2010, this decision will not take effect for 15 days from the date of signing.
Signature:		Position: Deputy Susie Pinel, Minister for Treasury and Resources
Date Signed:		Date of Decision: